Wye Limited Acquired Plant and Machinery for Use in Its

Multiple Choice

Wye Limited acquired plant and machinery for use in its business at a cost of £200,000 three years ago. The plant and machinery was estimated to have a residual value of £33,600 and an estimated useful life of 5 years. The plant and machinery has been depreciated on the reducing balance basis at the rate of 30% per annum. At the end of 3 years the plant and machinery was sold and a profit of £11,400 was made on the sale. What was the cash inflow from the sale of the plant and machinery that will be recorded under cash flows from investing activities?

A) £57,200
B) £61,640
C) £80,000
D) £112,075